BSBMKG501

Identify Marketing Opportunities

Course

Students Full Name

Student ID

Trainers name

Sydfeb17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Assessments: There are two assessment tasks to be completed. The assessment tasks required for
completion of this unit are listed as follows:

Assessment Method of assessment

Assessment 1 Project

Assessment 2 Activity

Assessment Requirements
Please read this section carefully before commencing the assessment tasks. You must carefully answer every
question of every task and achieve a ‘satisfactory’ grade for all assessment activities to be found Competent
for the unit.

Assessment Outcomes
There are two (2) outcomes of assessments:

 S = Satisfactory
 NS = Not Satisfactory (required to be re-submitted).
Students will be awarded C = Competent on completion of the unit when the student has provided the
appropriate evidence required to meet all criteria of both assessments. If the student fails to meet this
requirement they will receive the result NC = Not Competent and will be eligible to be re-assessed.

Submitting Assessments: into e-learning - How to name your attachment: Unit Code_(A2 or
A1)_Student Name
Assessments will only be accepted if the above instructions are followed

All assessments MUST be submitted as per submission dates (please refer to e-learning))

Late submissions and re-submission policy will apply (please refer to your training log)

Re-submitting assessments
Students will be allowed further attempts at an assessment for which the outcome is Not Satisfactory, within
the timeframe of the course (unit of competency). Late submissions and re submission policy will apply (please
refer to your student handbook)

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Scenario
Lonsdale fitness is small gym located in one of the
back rooms.

The current target market is Lonsdale students who

pay a casual rate of $7 per gym session.

Its opening hours are 9 am-5 pm.

Some useful information:

- Currently the only advertising

Lonsdale does is a gym poster on the wall on level 1
and relies on word of mouth marketing.
- The gym currently has approximately 20 regular customers (all Lonsdale students) who use the gym about
twice a week.
- The gym has no dedicated staff, except for a receptionist who receives the payments
- There is a spare room next to the gym which is not being used
- Many students have complained about the limited opening hours of the gym
- Lonsdale Fitness is losing a lot of its customers, with 50% leaving the gym after only 1 month.
- Lonsdale Fitness has no online presence at all.

Lonsdale’s business goals for the gym are as follows:

- Increase Lonsdale Fitness’ overall profits by 30% by the end of 2018.

- Increase client retention by 20% by the end of 2018.

Marketing goals:

- Increase market share by 20 %

- Improve Lonsdale Fitness branding
- Expand to at least 1 new target market
- Develop at least 2 new products/services
- Develop an online marketing presence

Or choose your own business

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Section A – Marketing Opportunity Research - Analysis of current marketing information and the
business needs for the business you have chosen.

1) Company Background:
Nick Doughnuts begins from 2015, in Hughesdale. We have established its reputation as a leading
supplier in Melbourne’s thriving doughnuts industry. Through a commitment to quality and service,
Nick and their dedicated team have produced some of the most spectacular and unique doughnuts
designs.

Company’s business goals (min 3 goals): Goals must be SMART goals.

SMART GOAL 1 GOAL2 GOAL3

Specific, Establishing high Offering wholesome, Excellent food quality

Measurable, quality jobs for target priced, ethnically
Achievable/Attainable food service diverse food options
Realistic, employees, including
Timed good wages and
benefits, career
advancement
opportunities, access to
training and capacity
building, participation in
decision-making and
opportunities for
ownership

Current services/products:

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
The company’s current target market (external customers):

My company is targeting people of all ages

The current marketing/promotions being used:

Social media , flyers

2 - Identify a minimum of 4 marketing opportunities (not including the example) for your
chosen company and evaluate their potential they may present in terms of likely contribution
to the business.

A marketing opportunity is defined as an opportunity to offer a new or existing product or service to a

segment of the market that you have not reached before or in a manner in which you have not
previously explored.

We are now going to analyze marketing opportunities for your product/service. The most important
part of any product development process is to focus on opportunities in the market first. (Consider –
Marketing Campaigns /New Target Markets/ New Products/Services / Specific promotions)

Marketing Opportunity Description of the opportunity and the potential

Example (Delete example)
Target customers from
outside Lonsdale Institute
Open the gym up to the public, as a boutique gym, which is an
alternative to other larger gyms. Opening up the gym to the
public will also improve the profile of Lonsdale, and possible
increase the number of students as well as visitors to the gym
resulting in increased profitability.

Wholesale operate as a commercial doughnut bakery, wholesaler to

convenience stores, grocery stores, mass merchants, food service
and institutional account

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Industrial Industrial setup: automated facility for high volume
production

Supplying
supplying own bakery/restaurant: donuts as additional product
line

Franchise enter a franchising agreement with an existing branded

business

3 Develop an innovative approach and creative ideas to market one of the above opportunities,
(E.g. You might organise a special event to help market your business). Present your
innovative/creative approach and the associated creative ideas to develop the opportunities. .
(Min 50 words)

Donut retail chains cook cake donuts in the premises using an automatic donut fryer and serve them
fresh and hot with cinnamon and sugar. These donuts are also sometimes glazed or filled. Yeast
donuts, on the other hand, are supplied by the chain’s central baking facility. In this facility, yeast
donuts undergo initial cooking processes starting from mixing their proprietary premix, then proofing,
sheeting and cutting, or extrusion and frying the donuts. The donuts are then quick frozen and
delivered to retail outlets where these would be thawed, baked and then finished. Finishing may
include glazing, icing, filling and toppings

Section B – Investigate the marketing opportunities

1 - Select 3 marketing opportunities from Section A and evaluate them. Describe the strengths and
weaknesses of each method and their importance to the outcomes you want for your business's (to
reach the business goals) marketing e.g. Sponsorship of events – increase brand awareness.
Develops a relationship, loyalty and trust from potential customers
6

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
 Promotional/Marketing Strengths Weaknesses Importance – how it
opportunity links to business
outcomes/goals
1.Franchise knowledge of existing High rental costs increase brand

products awareness and also

develops a relationship,

of loyalty and trust with

potential customers

2. Industrial Quantity Low Quality Increase sales but very

demanding

3. Increase sales

Wholesale Quantity No fresh ingredients

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
2- Impact on customers from each marketing method/promo (What effect will this have on your
existing customers/clients?) (Min 30 words per method)

Promotional/Marketing Opportunity Impact on existing clients

1. Franchise

Change name and products

2. Industrial Probably change he method of making fresh

doughnuts

3. Wholesale Probably change he method of making fresh

doughnuts

3 - Financial assessment (Conduct a cost benefit analysis for each (3) opportunity):

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
 Cost–benefit analysis (CBA), is a systematic approach to estimate the strengths and
weaknesses of alternatives it is used to determine options that provide the best approach to achieve
benefits while preserving savings

Then Compare the value of your costs to the value of your benefits, and use this analysis to decide
your course of action.
To do this, calculate your total costs and your total benefits, and compare the two values to determine
whether your benefits outweigh your costs. At this stage it's important to consider the payback time,
to find out how long it will take for you to reach the break even point – the point in time at which the
benefits have just repaid the costs.
For simple examples, where the same benefits are received each period, you can calculate the
payback period by dividing the projected total cost of the project by the projected total revenues:
Total cost / total revenue (or benefits) = length of time (payback period).

(Remember to DELETE the example)

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Promotional/Marketing Opportunity 1 Name: Franchise

Category
Cost Details Cost in the
first year
Staff Salary, including benefits $100000
Supplies $20000
Rental cost Recruitment costs $100000
Orientation and training

220000
Total Cost:

Benefits Benefit within

the first year
Increase number of new customers $300000

300000
Total Revenue (or benefits):

220000 ÷ 300000 (or benefits) = 0.7(payback period)

Promotional/Marketing Opportunity 2 Name: Industrial

Category
Cost Details Cost in the
first year
Staff 400000 500000
Supplies
10

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
 100000

500000
Total Cost:

Benefits Benefit within

the first year
Increase sales $1000000

1000000
Total Revenue (or benefits):

Total cost / total revenue (or benefits) = Payback period

Payback Period = 0,5

Promotional/Marketing Opportunity 3 Name: Wholesale

Category
Cost Details Cost in first
year
Staff 250000 300000
Supplies
50000

300000
Total Cost:

11

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Benefits Benefit within
the first year
Increase sales 800000

800000
Total Revenue (or benefits):

Total cost / total revenue (or benefits) = Payback period

Payback Period = 0,3

Section C – Business Adjustments

Identify the changes that would be needed to current OPERATIONS to take advantage of the
identified opportunities, including the following:

- Required organisational changes - Minimum 3

- Resource requirements – Minimum 3 per organisational change

Hint: complete on below form

Will you need to hire new staff? Will you need to implement training for staff?
New Equipment if so what? Will you need more space? Another room or building?

Opportunity Organisational Change Resources Needed

1 Create a new doughnuts menu New pastry chef

2 Rent a bigger store in a better spot Money ($500000)

3 New equipment so we can make more doughnuts Money ($300000)

12

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
References

13

V3 march 17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F